Pharmaceutical Sector Growth Forecast for FY25: Insights from CRISIL
Pharmaceutical Sector Growth Projections
The pharmaceutical sector growth is forecasted at 10% for FY25, driven by better exports in regulated markets and steady domestic demand.
Financial Analysts' Insights
According to a report by CRISIL, the India pharmaceutical market is the third largest globally by volume. The sector's revenue is expected to grow by 8-10% from the previous fiscal year, primarily due to new product launches.
- New product launches will significantly impact domestic revenue.
- Revenue from chronic disease medications is a key growth factor.
Increasing Profit Margins
Profit margins in Indian pharmaceuticals are anticipated to improve by 70-80 basis points, reaching a margin of 22.5% due to reduced pricing pressures in the US generics market.
Inorganic Growth Opportunities
With stable cash flows, pharmaceutical companies are focusing on inorganic growth opportunities to expand their portfolios and consolidate market share.
Distribution of Revenue
The revenue of the pharmaceutical sector is evenly split between domestic sales and exports. As pharma exports are expected to grow significantly, the distribution between regulated and semi-regulated markets will play a vital role.
- Formulation exports account for 80% of total pharmaceutical exports.
- Regulated markets are expected to see a growth rate of 13-15% due to ongoing drug shortages.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.